Из жизни альткоинов

Amidst economic turmoil and stringent regulations, citizens in countries like Argentina and Venezuela have turned to Bitcoin as a lifeline. The International Monetary Fund (IMF) examines how individuals in these nations are leveraging Bitcoin to manage their finances, bypassing capital controls through off-blockchain transactions.

This trend underscores the resilience and adaptability of cryptocurrencies in providing financial autonomy to individuals in challenging economic environments.

The IMF has released a groundbreaking report titled “A Primer on Bitcoin Cross-Border Flows,” shedding light on the increasing relevance of the world’s most popular cryptocurrency in facilitating international financial exchanges.

Understanding The Dynamics Of Bitcoin Transactions

The report also uncovers a fascinating correlation between Bitcoin flows and traditional economic markers. Contrary to conventional wisdom, cryptocurrency-specific factors such as market volatility and user sentiment exert a stronger influence on crypto transactions than traditional indicators.

This suggests that cryptocurrencies, with their unique adoption dynamics, possess the potential to serve as a hedge against conventional financial risks, offering individuals and businesses a novel avenue for diversification and risk management.

Navigating Regulatory Challenges In The Crypto Landscape

While recognizing the promising role of Bitcoin in fostering cross-border commerce and financial inclusion, the IMF report sounds a note of caution regarding regulatory oversight. The inherent anonymity of cryptocurrency transactions raises concerns about their potential misuse for illicit activities such as money laundering.

Consequently, the report underscores the imperative for global cooperation in establishing clear and consistent regulations to mitigate risks and foster a secure environment for cryptocurrency transactions.

The call for comprehensive cryptocurrency regulation echoes across borders, as policymakers grapple with the complexities of overseeing a rapidly evolving financial ecosystem. Clear and transparent regulations not only address the risks associated with Bitcoin and other cryptocurrencies but also lay the groundwork for a more predictable and stable financial environment.

By striking a delicate balance between fostering innovation and safeguarding against potential abuses, regulators can pave the way for continued growth and innovation in the cryptocurrency industry.

Embracing The Potential Of Bitcoin

As Bitcoin’s influence on global finance continues to expand, the IMF report serves as a timely reminder of the opportunities and challenges associated with cryptocurrencies. While Bitcoin holds immense promise in facilitating cross-border transactions and promoting financial inclusion, effective regulation is essential to mitigate risks and ensure the integrity of the financial system.

By embracing the potential of Bitcoin while proactively addressing regulatory challenges, policymakers can harness the transformative power of cryptocurrencies to shape a more inclusive and resilient global economy.

Featured image from Pexels, chart from TradingView

Changpeng Zhao, the founder and CEO of Binance, the largest cryptocurrency exchange globally, faces a sentencing recommendation of three years imprisonment from the US Department of Justice (DOJ). This follows his guilty plea last year to charges concerning severe lapses in the company’s anti-money laundering (AML) controls, as mandated by the US Bank Secrecy Act.

A “Message” To The Binance Founder And The World

Zhao’s explicit disregard for US regulations was underscored by the DOJ in a scathing sentencing memorandum. They quoted Zhao’s own words, highlighting his approach to legal compliance: “Better to ask for forgiveness than permission,” suggesting a strategic bypass of regulatory requirements to expedite Binance’s market expansion and profitability.

The DOJ laid out the case against Zhao, describing how his decisions to flout US laws were integral to Binance’s business strategy, which aggressively targeted US customers without adhering to requisite legal standards. “Zhao’s willful violation of US law was no accident or oversight. He made a business decision that violating US law was the best way to attract users, build his company, and line his pockets,” the US Attorney’s Office stated.

According to the DOJ, Zhao’s actions enabled Binance to operate a ‘Wild West’ model of cryptocurrency exchange, inviting illicit financial flows. The memorandum notes, “As a result, Zhao is one of richest people in the world and a celebrity in the crypto industry. Zhao bet that he would not get caught, and that if he did, the consequences would not be as serious as the crime.”

The prosecution detailed how Zhao’s failure to implement an effective AML program led Binance to process hundreds of millions of dollars worth of transactions violating US sanctions against Iran and other countries, quantifying the total at approximately $898 million.

The sentencing memorandum emphasizes the gravity and scale of these violations, stating, “Zhao knew that his decision not to implement an effective AML program would result in Binance facilitating transactions between US users and users in Iran and other sanctioned countries and regions in violation of US law.”

In light of these findings, the DOJ is recommending a sentence that would go beyond the federal guidelines, suggesting a 36-month term of imprisonment to “reflect the seriousness of the offense, promote respect for law, afford adequate deterrence, and serve as just punishment for Zhao’s criminal acts.”

Zhao’s sentencing is poised to set a precedent in the regulatory oversight of the crypto industry, particularly concerning compliance with US financial laws. The outcome will likely resonate across the crypto landscape, potentially reshaping how exchanges operate in compliance with US regulations. The DOJ’s closing remarks in the memorandum drive home the broader implications of Zhao’s sentencing: “The sentence in this case will not just send a message to Zhao but also to the world.”

The final sentencing decision, expected to be delivered on April 30, marks a crucial juncture for the legal scrutiny of crypto operations within the United States.

At press time, BNB traded at $607.7.

Аналитики криптовалютной биржи Bitfinex предположили, что вскоре после состоявшегося 20 апреля халвинга биткоина спрос на цифровой актив превысит предложение в пять раз. Причина: ежедневный объем эмиссии стал сокращаться.

Криптобиржа CoinEx выставила на аукцион «эпический» сатоши. Клиенты платформы могут делать ставки на странице аукциона, который продлится до 26 апреля 2024 года.

Издание The Wall Street Journal (WSJ) со ссылкой на нормативные документы сообщило, что инвестиционная компания Grayscale подала в SEC заявку на создание нового продукта под названием Ethereum Mini Trust.

Немецкий федеральный банк объявил о партнерстве с Массачусетским технологическим институтом (MIT) для исследования цифровой валюты центрального банка (CBDC).

American charities are experiencing a windfall thanks to a new kind of currency: cryptocurrency. By accepting donations in crypto such as Bitcoin, Ethereum, and other digital assets, non-profits are witnessing a surge in contributions, streamlining processes, and reaching new donor demographics.

This year alone, the two largest US charities have reportedly raised over $2 billion through crypto donations, according to a recent report by Bankless Times. This represents a massive leap from the $125 million collected in donations throughout 2022. The Giving Block, a platform facilitating digital currency donations for charities, has been instrumental in this shift.

Crypto Donations: A Boon For Efficiency And Convenience

The rise of crypto donations offers several advantages for both charities and donors. Platforms like The Giving Block simplify transactions, allowing donors to bypass complex international money transfers. This expedites the process and ensures donations reach their intended causes faster. Additionally, this type of donations often appeal to a younger, tech-savvy generation comfortable with digital transactions.

For charities, accepting crypto donations translates to a wider funding pool. It allows them to tap into a global network of investors who may not have traditionally participated in philanthropy. This diversification can be crucial for organizations seeking to expand their reach and impact.

Regulatory And Security Challenges

While the influx of crypto donations presents exciting opportunities, it also comes with challenges. Charities must navigate a complex regulatory landscape to ensure compliance with Know Your Client (KYC) and Anti-Money Laundering (AML) laws.

These regulations are essential for preventing fraud and maintaining the integrity of the financial system. However, navigating KYC/AML compliance can be a time-consuming and resource-intensive process for nonprofits.

Furthermore, the digital nature of cryptocurrency exposes charities to cybersecurity risks. Hackers may target these organizations to steal donated funds. To mitigate these risks, charities need to invest in robust cybersecurity measures and stay updated on the latest threats.

The Future Of Philanthropy: A Promising Outlook

Despite these challenges, the trend of crypto donations in the nonprofit sector shows no signs of slowing down. With the increasing adoption of Bitcoin and growing public confidence in digital transactions, charities are likely to see a continued rise in digital currency contributions.

As the regulatory environment evolves and security protocols strengthen, crypto donations hold the potential to revolutionize philanthropic giving, fostering a more efficient, transparent, and globally connected giving ecosystem.

Featured image from Pexels, chart from TradingView

Эксперты инвестиционного фонда QCP Capital считают, что ограничение предложения биткоина приведет к стабилизации стоимости первой криптовалюты в краткосрочной и среднесрочной перспективах.

Бывший генеральный директор BitMEX Артур Хейс (Arthur Hayes) считает, что инфляция, рост государственных долгов и дефицит рыночного предложения биткоина могут способствовать росту цен на криптовалютном рынке.

Криптокошелек Chivo, которым управляет правительство Сальвадора, столкнулся с серьезным нарушением безопасности — группа хакеров CiberInteligenciaSV раскрыла фрагменты исходного кода и сведений о доступе к VPN.

Прокуратура США потребовала осудить бывшего главу криптовалютной биржи Binance Чанпэна Чжао (Changpeng Zhao) на срок от 36 месяцев тюремного заключения.

Недавно американский суд признал основателя Terraform Labs До Квона виновным в мошенничестве в рамках гражданского иска. Теперь SEC собирается наложить на него штраф в размере $5,3 млрд.

The tides are shifting in the Bitcoin sea. A recent analysis by CryptoQuant, a blockchain analytics firm, paints a picture of a changing investor landscape, with a new breed of “whales” – high-volume crypto holders – entering the fray and established players holding their ground.

This influx of fresh capital is significant. CryptoQuant CEO Ki Young Ju reports that these “new whales,” likely hailing from traditional finance and entering through Bitcoin ETFs, have amassed a staggering $111 billion worth of Bitcoin. This edges the holdings of established, “long-term whales” whose collective stash sits at $67 billion.

The new whales’ initial investment in #Bitcoin is almost twice the old whales’ cumulative total. pic.twitter.com/SU5Aiw1nJB

— Ki Young Ju (@ki_young_ju) April 23, 2024

Crypto Newcomers With Deep Pockets

While the financial firepower of these new whales is undeniable, their profit picture paints a different story. Unlike their seasoned counterparts who boast over 200% in unrealized profits, these newcomers are experiencing a much more modest 1.5% gain. This suggests they might have entered the crypto market at a higher price point, potentially during the recent surge towards the $67,000 resistance level.

Miners Making Hay

Despite the contrasting fortunes of New and Long-Term Whales, the overall market sentiment seems bullish. CryptoQuant’s analysis extends beyond whales, revealing healthy profits for miners as well.

Small miners are leading the pack with an impressive 130% in unrealized profits, while their larger counterparts haven’t done too shabby either, sitting at a comfortable 81%. This robust mining profitability indicates a healthy network, with miners diligently securing the Bitcoin blockchain.

Bullish Outlook

Ju believes this data combination points towards a prolonged bull run. The fact that New Whales haven’t cashed out for significant profits suggests they’re in it for the long haul, potentially anticipating further price increases. This aligns with the ongoing interest in Bitcoin ETFs, with Fidelity’s IBIT leading the pack in terms of new investments last week.

The $67,000 Question

However, the path forward isn’t entirely smooth sailing. Bitcoin is currently struggling to decisively break through the $67,000 resistance level. This could be a point of contention in the near future, with bulls pushing for a breakout and bears looking for a potential correction.

The cryptocurrency market is witnessing a fascinating dynamic. New investors with deep pockets are entering, established whales are holding firm, and miners are profiting handsomely. While the short-term price movement of Bitcoin remains to be seen, the overall market sentiment seems to favor a continuation of the bull run.

Featured image from Pexels, chart from TradingView

Компания Block, основанная создателем Twitter Джеком Дорси, сообщила о завершении разработки нового майнингового чипа с техпроцессом 3 нм для добычи биткоина.

Участники Всемирного экономического форума (ВЭФ) представили результаты исследования, согласно которому 98% ЦБ по всему миру разрабатывают национальные криптовалюты (CBDC).

In yesterday’s court filing opposing the US Securities and Exchange Commission’s (SEC) motion for remedies and final judgment, Ripple disclosed significant changes to its On-Demand Liquidity (ODL) operations in the United States. The filing clarified that its US-based ODL services have shifted from using XRP to Tether (USDT) as a bridge currency.

Why Ripple Chose USDT

This strategic pivot was a response to the summary judgment in the SEC lawsuit which found that institutional sales fell under the US security laws. Since the ruling, non-US entities have been the sole contracting parties for XRP sales contracts to ODL customers. The filing highlights that “the company’s remaining ODL business in the United States uses a non-XRP bridge currency.”

Monica Long, President of Ripple, elaborated in an internal email, details of which were shared by prominent XRP community member Crypto Eri (@sentosumosaba) on social media platform X. Long stated:

Immediately following the Order, we took steps to migrate each US-based ODL customer from using XRP as the bridge currency in ODL to using USDT (or the contract was terminated). We should continue to use USDT (or BTC or other vetted stablecoins) for US based flows unless otherwise approved by Legal.

This adjustment reflects the company’s effort to ensure its service offerings align with US legal standards while still supporting global operations largely unaffected by the SEC’s scrutiny. The email emphasizes the strategic role of the Singapore subsidiaries, which now handle most contractual relationships for selling XRP to new ODL customers, particularly those outside the US Long notes:

Ripple’s Singapore subsidiaries have been the primary contracting entity for Commitment to Sell XRP contracts to new ODL customers, who are predominantly foreign. And since the Order, non-US entities have exclusively been the contracting parties for XRP sales contracts to ODL customers.

The restructuring within Ripple’s business model underscores a significant geographical and operational pivot. Most of ODL customers are located in the Asia-Pacific region, leveraging the monetary corridors between non-US entities and countries. The licensing of Ripple Markets APAC Pte Ltd by the Monetary Authority of Singapore facilitated this, as Long further explained:

To service our ODL customers, we should continue to leverage our foreign subsidiaries who are licensed by local regulators to lawfully conduct such activity.

Moreover, the court filing revealed the company’s financial dependencies and operational strategies preceding the SEC lawsuit. Ripple’s accounting expert, Anthony Bracco, calculated that the company operated at a loss from April 1, 2014, through December 22, 2020, without the revenue from XRP sales. This detail highlights the financial impact of XRP sales on Ripple’s overall business stability during that period.

“Bracco calculated Ripple’s monetary operating costs and income taxes paid, which total [redacted]. Deducting those expenses from Ripple’s pre-Complaint revenue from Institutional Sales in that period, which totals [redacted], and further deducting income taxes, which total [redacted], Ripple had a loss of [redacted],” the filing states.

At press time, XRP traded at $0.549.

PayPal’s Blockchain Research Group has joined Energy Web and DMG Blockchain Solutions to support “sustainable” Bitcoin mining. According to the paper, the collaboration “presents an opportunity to accelerate the clean energy transition” using crypto-economic incentives.

PayPal Research On Bitcoin Mining

In a recently published paper, PayPal’s Blockchain Research Group (BRG) proposed “the possibility for a more sustainable future” in Bitcoin mining. The investigation revealed that, as of April 2, data estimates the annualized emissions to be over 85 million metric tons of carbon dioxide due to Bitcoin’s Proof-of-Work (PoW) consensus mechanism:

The reason behind this significant impact is the proof-of-work (PoW) consensus mechanism that secures the Bitcoin network. In PoW, miners engage in a competitive race to find solutions (i.e., cryptographic hashes) for Bitcoin blocks, requiring powerful computational hardware like ASIC machines.

This race and its demand for robust computational power require significant electricity. Miners’ use of carbon-based energy sources consequentially “results in the underlying greenhouse gas emissions footprint of the Bitcoin network.”

As a solution, PayPal’s BRG aims to “incentivize desired activity with crypto-economics” to improve and optimize “existing, proven strong networks.” Additionally, the firm wishes to support “more environmentally responsible” mining and encourage other miners to shift towards cleaner energy sources.”

Bitcoin Rewards For “Green Mining”

The paper suggests routing on-chain transactions to “green miners” via low transaction fees with a BTC reward “locked” in a multisig payout address. The rewards would serve as an incentive to mine these transactions, as only green miners would be eligible to receive them.

The solution is based on identifying miners that use low-emissions energy sources. After identification, their public keys, referred to as “green keys,” would be used to reward miners with Bitcoin in a trust-independent method through a “1-of-n multisig script.” As a result, the payout address would allow the miners with green keys to claim the rewards.

Providers such as Energy Web would help to identify the green miners and onboard them to the solution. The non-profit organization offers a “Green Proofs for Bitcoin” initiative that promotes transparency and “supports alignment between Bitcoin mining and global decarbonization effort.”

Miners would apply for and share their sustainable mining certifications through the Green Proofs for Bitcoin validation platform.

Moreover, the proposed solution has been successfully tested with DMG. The firm broadcasted multiple low-fee transactions to test how effectively they would operate under different levels of on-chain transaction volumes.

Depending on the transaction volume, the low-fee ones would “either take a long time to confirm or eventually be dropped by the network.” This would increase the green miners’ chances to pick them up.

Per the paper, the trade-offs were “acceptable,” however, alternative solutions could be evaluated:

It is possible to design alternative solutions where transactions and rewards can be sent to miners via a private mechanism rather than using the public mempool.

Exploring technologies like smart contracts or the lighting network is also proposed as an alternative way to address the issues. However, they could come at the expense of “trust dependence and a more complex implementation.”

However, it is worth noting that Bitcoin mining has been controversial. While many legacy companies, such as PayPal and others, have targeted the network due to its alleged intense electrical consumption and carbon emissions, other research has pointed to the increasing use of renewable energy and the low carbon emissions the nascent industry produces, as seen in the chart below.

In an article posted by Forbes, analyst Jonathan Buck pointed out:

the CCAF has determined that the bitcoin industry uses a significant amount of renewable energy, sometimes more than half, depending on the jurisdiction. This is a testament to the industry’s commitment to sustainability and its potential role in the green revolution.

Two prominent crypto industry groups, the Blockchain Association and the Crypto Freedom Alliance (CFAT) of Texas, have filed a lawsuit against the US Securities and Exchange Commission (SEC) to contest a newly implemented rule expanding the definition of a “dealer” in securities. 

The complaint, lodged in a federal court in Texas, alleges that the SEC exceeded its authority and approved an arbitrary and capricious rule.

Crypto Industry Takes Legal Action Against SEC

In the lawsuit, the crypto firms argue that the new rule is “vague, overly broad” and fails to provide clarity on its implications for crypto market participants. 

In particular, under the SEC rule, developers of automated software and liquidity providers for certain trading protocols could fall within the definition of “dealer,” resulting in increased costs and additional regulatory requirements.

The complaint further contends that the SEC’s implementation of the Dealer Rule violates the Administrative Procedure Act (APA), preventing industry participants from operating under clearly communicated rules established through a fair and transparent rulemaking process. 

According to the complaint, the SEC’s interpretation of the term “dealer” as outlined in the Securities Exchange Act of 1934 is an “unlawful and radical expansion” that departs from its longstanding and “well-established meaning.” 

The complaint also emphasizes that the rule will cause “irreparable harm” to the millions of Americans and businesses involved in digital asset trading. The two crypto firms also cite the SEC’s refusal to adequately address concerns raised during the comment period and failure to assess the costs and benefits of its approach as violations of the APA. 

CEO Slams SEC’s Regulatory Overreach

Blockchain Association CEO Kristin Smith criticized the SEC’s regulatory overreach and failure to address industry concerns in a compressed comment period. Smith stated:

The Dealer Rule advances the SEC’s anti-digital asset crusade and unlawfully redefines the boundaries of its statutory authority granted by Congress. It threatens to drive US companies offshore and incite fear in American innovators. 

Smith emphasized the Blockchain Association and the Crypto Freedom Alliance of Texas’s commitment to protecting the American digital asset ecosystem.

Ultimately, the lawsuit seeks declaratory judgment and injunctive relief to overturn the SEC’s rule expansion and prevent its application within the industry.

The legal battle between crypto industry groups and the SEC highlights the ongoing struggle to establish a clear regulatory framework for the emerging digital asset market. 

As the case unfolds, its outcome could have significant implications for the industry’s future and the balance between regulatory oversight and innovation in the United States.

Featured image from Shutterstock, chart from TradingView.com

Crypto.com, a global crypto exchange, recently postponed its much-anticipated retail market expansion in South Korea, originally scheduled for April 29.

This strategic decision came just six days before the planned launch, and according to the report, this delay is due to the company’s need for more comprehensive engagement with local regulatory bodies.

Regulatory Hurdles And Strategic Responses

Notably, the report suggests that the delay allows Crypto.com to further “refine its approach” and ensure its operations align with South Korea’s regulations, particularly concerning anti-money laundering efforts.

According to a company statement, this period will be used to “enhance” Korean regulators’ understanding of the exchange’s policies, systems, and controls designed to build a responsible and secure trading environment.

The company particularly noted:

Korea is a difficult market for international exchanges to enter, but we are committed to working with regulators to advance the industry responsibly for Koreans. We will postpone our launch and take this opportunity to make sure Korean regulators understand our thorough policies, procedures, systems and controls

According to Bloomberg, citing a Korean news organization, Segye Ilbo, the decision followed a visit to Crypto.com’s Seoul office by South Korea’s Financial Intelligence Unit, which expressed concerns over some of the documentation the exchange submitted.

Furthermore, Crypto.com acquired the local platform OkBIT and planned to integrate its services under the Crypto.com brand as part of its Korean market entry strategy. However, following the regulatory feedback, the launch has been deferred indefinitely, with no new date provided.

A spokesperson told Bloomberg:

Crypto.com has not onboarded any new customers in Korea since acquiring OkBit (…) OkBit had around 900 users at the time of acquisition and their access has just been limited to withdrawals.

South Korea’s Stance On Crypto: Surge In Consumer Interest

The postponement occurs amid heightened interest in cryptocurrencies in South Korea. The country plays a significant role in global digital currency trading and has unique market characteristics that distinguish it from other regions.

Recent reports revealed that the South Korean market is known for its preference for altcoins, which are often more volatile than major digital currencies like Bitcoin and Ethereum.

The report indicates that in the first quarter of 2024, the South Korea Won emerged as the dominant currency for cryptocurrency trades worldwide, surpassing even the US dollar in trade volume.

This surge is reflective of the speculative enthusiasm surrounding digital currency assets in the region, which has been so prominent that, according to Bloomberg, it became a topic of discussion in recent parliamentary elections.

Politicians have also attempted to sway voters by promising more favorable digital currency tax policies and fewer investment restrictions.

Featured image from Unsplash, Chart from TradingView

Dogecoin could be heading toward an imminent sell-off that could tank its price as a significant tranche of coins is about to move into profit. In such a case, it would not be out of the ordinary to see a large number of investors sell off their holdings as they move to secure some profit.

10 Billion DOGE Headed For Profit

In an interesting twist, the Dogecoin price crossing $0.17 could be both good and bad for the price. This is because a large number of DOGE coins were bought between the $0.15 and $0.168 levels, meaning that a cross above $0.17 would put all of these coins in profit.

According to data from IntoTheBlock, there are approximately 10 billion DOGE coins that are sitting in this level waiting to move up into profit. At current prices, it means that more than $1.58 billion are waiting for the $0.17 price point to be reclaimed.

While a move above $0.17 would be positive for the meme coin, it will also put it at risk of a sell-off from these holders. Given that the Dogecoin price has been muted for the majority of 2023 before seeing some upside in March 2024, investor fatigue is expected, prompting some holders to take profit as soon as they see it.

However, there is also the fact that a move above $0.17 will not be a significant profit margin for a large number of investors. Hence, they might be more inclined to wait for higher prices before selling rather than barely breaking even on their investments.

What Happens To Dogecoin In The Event Of A Sell-Off?

Presently, the Dogecoin price is sitting 7% below the $0.17 price level, which still gives it some runway until it gets there. However, if a large number of these DOGE investors do decide to sell their coins, it could push the price of Dogecoin back down toward the $0.15 support.

Despite the threat of a sell-off, bullish sentiment continues to dominate the meme coin as multiple crypto analysts have predicted a major upside for DOGE’s price. Analyst Altcoin Sherpa believes that the Dogecoin price will do very well in 2024 and will outperform plenty of altcoins.

Another analyst, Ali Martinez, revealed that the meme coin has now entered the buy zone, making it a good choice for accumulation. According to Martinez, the DOGE price can rise another 700% from here to cross the $1 threshold and make a new all-time high.